Actuarial Notes

SOA Exam P Sample Question 28

Study guide: Exam P-1

The number of days that elapse between the beginning of a calendar year and the moment a high-risk driver is involved in an accident is exponentially distributed. An insurance company expects that 30% of high-risk drivers will be involved in an accident during the first 50 days of a calendar year.

Calculate the portion of high-risk drivers are expected to be involved in an accident during the first 80 days of a calendar year.

  • A) 0.15
  • B) 0.34
  • C) 0.43
  • D) 0.57
  • E) 0.66

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